The DV process is a debt collection practices provision of the FDCPA intented to relieve consumers of active collection by a debt collector until they have provided the consumer basic information regarding the collection, such as a statement that they have obtained verification of the debt, the name of the current creditor, amount of the debt, and if additioally requuested, the name of the original creditor. A DV must be timely in order to invoke a cease collection bar, meaning it is sent prior to receipt of any dunning notice, or within 30 days of recepit of a dunning notice. If untimely, it invokes no requirement on the debt collector.
It is not a process that compels the debt collector to provide the requested information. Their "penalty" for not responding is that they must cease collection on the debt until they have done so.
Whether or not to pursue payment through the OC or debt collector depends upon several factors.
Does the OC still own the debt, and the debt collector is merely their assigned collection agent? If so, either can accept payment.
If the OC still owns the debt and is willing to take payment, you could pay through them. That will require the OC to promptly notify the debt collector that the debt has been paid, thus terminating the collection, and requiring the debt collectot to close their collection and update its status to $0 under collection.
It does not require the debt collector to delete their reportting. You can ask the OC to contact their assigned debt collector and delete the collection, but the OC cannot require them to do so.
You can also, rather than just paying the OC, make then a PFD offer, which, if accepted, would result in deletion of derogs reported by the OC.
Usually not as beneficial score-wise as deletion of a collection, but nonetheless removes reported OC derogs.
Alternately, if you pay the debt collector, you can offer payment in direct exchange for their agreement to delete their collection. Since it is their reporting, their agreement is binding. If they accept payment, they must then notify the OC that the debt has been satisfied, requiring the OC to update their reported debt balance to $0.
That course, if accepted, will result in both satisfaction of the debt and possible score improvement based on deletion of the reported collection.
